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    Capital budgeting considerations

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    Capital Budgeting Considerations

    A major college textbook publisher has an existing finance textbook. The publisher is debating whether or not to produce an "essentialized" version, meaning a shorter (and lower-priced) book. What are some of the considerations that should come into play? Give at least 3 considerations.

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    Please find my response below.

    The three capital budgeting considerations that should come into play are as follows:
    1) How much will the "essentialized" version cannibalize the sales of the existing version. This is essential to determine the incremental sales from this version of the book. While calculating the incremental sales, the publisher should take ...

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